DFEB vs SCHD

DFEB vs SCHD

Which is better, DFEB or SCHD?

Option Writing against Large Cap Value.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricDFEBSCHD
Expense Ratio0.85%0.06%Best
AUM$444M$112.1B
Dividend Yield0.00%3.00%
Holdings10103
YTD Return+7.81%+24.23%Best
1Y Return+11.28%+27.90%Best
3Y Return (annualized)+13.06%+15.55%Best
5Y Return (annualized)+8.32%+9.97%Best
Volatility (annualized)7.4%Best16.4%
Max Drawdown-14.1%Best-30.0%
$10,000 over 5 years$14,912$16,083Best
Fund FamilyFirst Trust Portfolios (US)Charles Schwab Asset Management
CategoryAlternativeEquity
StyleOption WritingLarge Cap Value
InceptionFeb 21, 2020Oct 20, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Feb 24, 2020 to Sep 17, 2026 (6.6 years).

DFEB vs SCHD growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.6 years both funds cover.

DFEB vs SCHD Performance

FT Vest US Equity Deep Buffer ETF - February (DFEB) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year DFEB returned +11.28% while SCHD returned +27.90%. Year to date, DFEB is up 7.81% versus a gain of 24.23% for SCHD.

Over three years, DFEB compounded at +13.06% per year against +15.55% for SCHD; over five years the annualized figures are +8.32% and +9.97% respectively. Across the full 7-year window we track, SCHD has the edge at +12.65% annualized vs +8.40%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 7.4% for DFEB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -14.1% for DFEB and -30.0% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DFEB charges 0.85% per year while SCHD charges 0.06%. On a $10,000 position that is $85 vs $6 annually, a gap of $79 per year that compounds over a long holding period. On income, DFEB currently yields 0.00% against 3.00% for SCHD.

You are not choosing between two funds in isolation.

Whichever of DFEB and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

DFEBSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, DFEB or SCHD?

DFEB has an expense ratio of 0.85% while SCHD charges 0.06%. SCHD is the cheaper option, by $79 a year on a $10,000 investment.

Which performed better, DFEB or SCHD?

Over the past year DFEB returned +11.28% vs +27.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), DFEB annualized +8.40% vs +12.65% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DFEB or SCHD?

SCHD has been the more volatile fund at 16.4% annualized versus 7.4% for DFEB. Worst drawdown: DFEB -14.1% vs SCHD -30.0%.

Should I hold both DFEB and SCHD?

DFEB and SCHD have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, DFEB or SCHD?

DFEB yields 0.00% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.

Is SCHD better than DFEB?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.